We can use following formula for Future value (FV) of ordinary annuity calculation (as the deposit s are made at the end on year)
FV = PMT * [(1+i) ^n – 1] /i
Where FV = future value of deposit after 9 years = $20,000
PMT or deposit per year =?
And i= I/Y = 14% is the interest rate per annum
The time period n = 9 years
Therefore,
$20,000 = PMT * [(1+ 14%) ^9 -1]/ 14%
PMT = $1,243.37
To reach your goal, your annual deposit must be $1,243.37
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